New York — Amazon has ascended to the rank of the world’s largest company by sales, ending Walmart’s 13-year dominance in the market. With reported sales of $717 billion in 2025, Amazon has slightly edged out Walmart, which posted $713 billion for the same period, a figure the retail giant announced on Thursday.
The remarkable ascent of Amazon can be attributed to its expansive growth in sectors beyond traditional retail, particularly in cloud computing and advertising. While both companies are strong players in consumer retail, Amazon’s diverse revenue streams have become a significant advantage, giving it the upper hand over Walmart.
Founded in 1994 by Jeff Bezos as a modest online bookstore, Amazon has evolved dramatically. Its Amazon Web Services (AWS) division generated nearly $129 billion last year alone, offering a wide range of computing, storage, and artificial intelligence solutions to businesses and governments globally. This arm of the business is critical for profitability, helping to balance out pressures faced by its retail segment.
In total, about $464 billion of Amazon’s revenue was derived from sales across its online platforms and physical stores, along with third-party seller contributions. Additionally, the company counted over $100 billion from advertising revenues and subscriptions to its Prime service, enhancing its financial strength significantly.
Walmart, meanwhile, continues to evolve in response to the competitive landscape. The retailer now derives over 90% of its revenue from physical stores and its website. Despite seeing its reign come to an end, Walmart has exhibited resilience and adaptability, with its stock recently exceeding $1 trillion in value, a milestone for any traditional retailer. The company also made strategic moves by relocating its stock listing to the Nasdaq, signaling a desire to be recognized as a technology-driven enterprise.
Under the leadership of CEO John Furner, Walmart reported a 4.6% growth in sales for its U.S. division in the last quarter. This surge has been fueled by an influx of consumers from middle-class and upper-income brackets seeking budget-friendly shopping options, allowing Walmart to capture more market share from competitors like Target.
“The pace of change in retail is accelerating,” Furner remarked in a statement, emphasizing the company’s commitment to adapting to industry shifts. “Our financial results show that we’re not only embracing this change, we’re leading it.”
As the retail landscape continues to evolve, both companies are likely to face new challenges and opportunities ahead. While Amazon has made its mark with innovative technologies and expansive services, Walmart’s strategy of leveraging its established infrastructure to connect with value-seeking customers showcases the dynamic nature of the industry. The competition between these retail giants is sure to shape the future of consumer shopping experiences.